Some Good News Out of Washington

"Here is a story still under-told," writes Charles Schwab's top investment strategist. "The U.S. budget deficit is plunging."

Here is a story still under-told. The U.S. budget deficit is plunging. It's been in a steady decline for over four years; but the pace at which it's improving has really picked up in the past year, particularly last month. About two-thirds of the improvement has come from the spending side, with the remainder on the revenue (tax receipts) side.

Ned Davis Research put together a great update on the trends underlying the deficit last month and I have filled in the blanks now that we have June's readings. Before I get to the...